DBS Cashline, a ready line of credit, could be an excellent choice for your short-term borrowing needs. You may be able to save close to 80% on fees and interest charges when you compare it to an average credit card cash advance. Once your DBS Cashline account is approved, you may use this account as a regular banking account and may use it to pay for your daily expenses. You can draw cash up to the credit limit available. As soon as you repay in full, the limit will be restored to the original amount.
If you’re looking for standby cash for emergency expenses such as unexpected medical expenses or impulse purchases, the following are some reasons to consider this product as an option:
Why take the risk of declined payments when you can enjoy complete control and convenience by setting up an auto top-up facility?You’ll be at complete liberty to decide on the minimum threshold amount and the top-up amount. Once the facility is set up, your Cashline Account will be topped up automatically by the amount chosen, every time the account balance hits the threshold mark set by you. You can link up to 5 savings and 5 current accounts and ensure that you don’t miss payments on your loans or other financial commitments. In order to set it up, simply indicate the accounts that you wish to link, indicate the minimum threshold amount, and the top-up amount (can’t be less than S$50). You’re all set!
You can disable the facility anytime you want. You can do it in one of the following ways:
Apply on or before 31 December 2018 and accumulate a certain outstanding balance within the first 2 months to earn Expedia vouchers. The value of the voucher will depend on the balance tier as shown below:
|Outstanding Balance Tier||Expedia Voucher|
|Tier 1: Up to S$350 within the first 2 months of approval||Worth S$30|
|Tier 2: Up to S$850 within the first 2 months of approval||Worth S$80|
|Type of Interest Charge||Rate|
|Prevailing effective interest||
19.8% p.a. if your gross annual income is S$30,000 or above
29.8% p.a. if your gross annual income lies between S$20,000 and S$30,000
|Default||25.8% p.a. or 35.8% p.a.|
If minimum payment isn’t made by the due date mentioned on the line of credit statement, you’ll be charged an additional 6% p.a. interest rate on the prevailing rate. Only if you make the minimum payment at least in the next three statement months, will the interest rate revert to the prevailing charges from the first day of the next statement cycle.
|Minimum monthly charge||2.5% of the outstanding balance, subject to a minimum of S$50|
|Interest Charge||At least S$10|
|Annual fee (waived for the first year)||S$100|
|Late payment fee||S$105|
|Fee on returned cheque||S$40 per cheque|
|Fee on stop-cheque request||S$30 per cheque|
|Request for past statement beyond 6 months from the date of request||S$20 on each instance|
|ATM card replacement fee||S$5 per replacement|
|Failed GIRO transaction fee||S$20|
|Loan prepayment fee||Nil|
DBS Cashline may seem to be an interesting choice when contrasted against other lines of credit in Singapore and even credit cards. Here’s how it fares when juxtaposed with the other options:
|Product||Prevailing Interest Rate||Default Interest Rate||Annual Fees||Minimum Monthly Payment||Minimum Interest Charge|
|DBS Cashline||From 19.8% p.a. to 29.8% p.a.||From 25.8% p.a. to 35.8% p.a.||S$100 (Waived for the first year)||2.5%, subject to a minimum of S$50||S$10|
|Citi Ready Credit||20.95% p.a.||Up to 26.95% p.a. (on 2 or more late payments within 6 months)||S$100||3%, subject to a minimum of S$45||S$5|
|OCBC EasiCredit||From 19.98% p.a. to 29.8% p.a.||Up to 36% p.a.||S$80 (Waived for the first year)||3%/5%, subject to a minimum of S$50||S$5|
|Maybank CreditAble||19.8% p.a.||25.8% p.a.||S$80||3%, subject to a minimum of S$30||S$5|
|HSBC Personal Line of Credit||18.5% p.a. (normal)||21.5% p.a.||S$60||3%, subject to a minimum of S$15||S$10|
|UOB CashPlus Line||19.98% p.a.||29.98% p.a.||S$100||2.5%, subject to a minimum of S$30||S$5|
In Singapore, cash advance on a credit card could go up to 28.92% p.a. and the effective rate of interest could be as high as 25.92% p.a. So, it’s quite apparent that borrowing from the DBS Cashline credit facility is cheaper than borrowing on your card. You may also treat this DBS account like a savings account and access cash quickly whenever you want.
While a line of credit can offer instant cash and security, you should carefully consider the following points before you apply:
To apply for this loan, you’ll have to satisfy the following conditions:
Your application may not be processed without supporting documents. Click here to check out the complete list of supporting documents.
If you’re an existing DBS customer, you may apply for a Cashline account by using your digibank online credentials. Otherwise, you may select one of the following channels:
You may fill up the relevant contact form available on the bank’s website if you encounter an error with login or you have misplaced the login credentials. A line of credit could turn out to be nothing short of a lifeline during unexpected financial emergencies. Whether your car has suddenly broken down and needs expensive repair or your car’s COE renewal date is near, you may use this line of credit to meet your financial exigencies. Come to think of it, you may consider it to be a bank account that lets you carry out regular banking transactions with the added benefit of borrowing or you may think of it as a credit card on which lower interest charges apply.
Q. How is the interest rate calculated on a per-day basis?
A. Daily interest will be calculated in the following manner:
Daily interest= (Number of days in the billing cycle) / 365 (or 366 in case of leap years) x Effective interest rate applicable x Outstanding balance
Q. Will I get a monthly statement with payment details?
A. Yes. The statement will outline the minimum due amount, the payment due date, and all the transactions made within the statement cycle.
Q. What are the modes of repayment available?
A. You may repay the outstanding balance through any one of the following channels:
Q. Can I request the bank to reconsider a credit limit raise on my Cashline account?
A. Yes. However, you’ll have to supplement your argument for a credit limit increase with supporting and valid income documents.
Q. Can I apply for a chequebook if I didn’t apply for one in the beginning?
A. Yes, you may. Simply visit a DBS/POSB branch to submit your request form. Alternatively, if you have a signature-operated current or savings account with DBS/POSB, you may download the relevant form from the bank’s website, fill it out, and mail it to the bank.